In 1997 the United States signed an agreement allowing all products produced in specified Jordanian-based QIZ’s would be permitted quota-free and duty-free access to the U.S.

The QIZ agreement gave Jordan a unique position in the garment industry. Unlike the U.S.’s other “free-trade” partners such as Mexico, Canada and the Caribbean countries, Jordan is free to import fabric from any country in the world while having only 35% value added.

Jordan created an export-driven garment industry overnight. Exports of apparel and clothing to the United States (HTS 61 and 62), skyrocketed from $2.9M in 1997 to $582M in 2003 a CAGR of 113%.

In 2003 exports of apparel and clothing amounted to 86.4% of all exports to the United States.

It is expected that Jordan will retain these advantage post-2005 when all quotas on garments will be phased out, though the industry will change dramatically.